Agricultural Economics Department
Date of this Version
1-31-2018
Citation
Cornhusker Economics, January 31, 2018, agecon.unl.edu/cornhuskereconomics
Abstract
The design of the income tax code reflects the special role of patronage equity in cooperative finance. Federal tax laws and policies allow agricultural cooperatives to retain net income as a source of equity capital by giving special tax deductions when income is allocated to patrons in proportion to their business with the cooperative. Income distribution choices by cooperatives have tax consequences.
Comments
Copyright 2018 University of Nebraska.